Micron Tech’s “Very Weak” Guidance

Margins are under pressure amid low pricing and as new products ramp, but should improve in fiscal 2017.

Micron Technology (MU: Nasdaq)

By Pacific Crest Securities ($13.76, June 30, 2016)

Very weak fiscal-fourth-quarter guidance was a surprise in an improving demand environment, but Micron Technology has not yet seen meaningful improvement in contract pricing. Margins are under pressure amid low pricing and as new products ramp, but should improve...